A county reclassifies a triplex two weeks before closing and the loan type changes with it

Here is a live scenario worth working through, because it comes up more often than people expect. A buyer is under contract on a triplex in akron, ohio at $312,000 and set to close with an fha loan on the 15th. Two weeks out, the county auditor updates the parcel record and reclassifies the property from a three-unit residential to a two-unit with a commercial accessory space, because the bottom unit has a separate exterior entrance and a half-bath that crosses a threshold nobody knew existed. The lender will not write fha on a mixed-use classification. The conventional option that replaces it needs 15 percent down instead of 3.5 percent, which is $46,800 against $10,920, and that difference is not sitting in the buyer's account. The seller will extend to june 1 and will not renegotiate price. The bottom unit rents for $875, the plan was to live in the middle, and the payment only worked because the fha structure let that $875 count in full. Two other lenders see the same classification problem. So the question the room can work is whether an auditor record like this can realistically be corrected inside eight weeks in ohio, or whether the eight weeks are better spent solving the down payment gap. What have people seen on reclassification appeals at the county level?